Home Secretary Priti Patel has taken action to close the Tier 1 Investor Visa for all new applicants with immediate effect. It has allowed applicants who invest funds in share capital or loan capital in active and trading UK registered companies to be granted entry and stay in the UK.
The scheme was established by the Labour Government in 2008 to encourage wealthy individuals from outside the European Union to invest in the United Kingdom.
Holders of these visas can subsequently seek permanent residency in the United Kingdom, which takes longer depending on how much money they invest.
It has been under constant scrutiny, with certain cases raising security concerns, such as persons who have amassed wealth illegally and are linked to greater corruption.
The Home Secretary has stated: “I have zero tolerance for abuse of our immigration system. Under my New Plan for Immigration, I want to ensure the British people have confidence in the system, including stopping corrupt elites who threaten our national security and push dirty money around our cities.”
She also adds that: “Closing this route is just the start of our renewed crackdown on fraud and illicit finance. We will be publishing a fraud action plan, while the forthcoming Economic Crime Bill will crack down on people abusing our financial institutions and better protect the taxpayer.”
The Home Office has issued 2,581 investor visas to Russian citizens since the scheme was introduced in 2008.
The scheme’s termination will be considered as part of a slew of measures being drafted against Moscow in the wake of the Ukraine crisis.